Real Estate Slow Down????

Lakegeezer · 10-24-2005, 11:19 AM

One problem with the valuations is that it reflects 100% turn-over. There is no way that current prices could be sustained at 2-3 times the volume which is selling today. When the towns add up their billions of valued property, it is a false number. In the past valuations were set at a lower percentage of "average selling price" - and this reflected reality. If there is a serious resession prices will settle. Lake towns are able to tax lake side property as they wish, because there is no voting representation from owners. As lake-front properties become year-round residences, the political climate could change. My ideal valuation would be to set the value at time time the property turns over - and index it up at the offical inflation rate. That way, the speculators would experience true value, yet the homesteaders would experience rational valuation.

10-24-2005, 11:19 AM	#11
Lakegeezer Senior Member Join Date: Feb 2003 Location: Moultonboro, NH Posts: 1,682 Blog Entries: 1 Thanks: 356 Thanked 641 Times in 292 Posts	Bubble valuation One problem with the valuations is that it reflects 100% turn-over. There is no way that current prices could be sustained at 2-3 times the volume which is selling today. When the towns add up their billions of valued property, it is a false number. In the past valuations were set at a lower percentage of "average selling price" - and this reflected reality. If there is a serious resession prices will settle. Lake towns are able to tax lake side property as they wish, because there is no voting representation from owners. As lake-front properties become year-round residences, the political climate could change. My ideal valuation would be to set the value at time time the property turns over - and index it up at the offical inflation rate. That way, the speculators would experience true value, yet the homesteaders would experience rational valuation. __________________ -lg